Secure Trust Bank PLC (LSE:STB) edged lower after a bright start as investors focused on the bad debt line in its half-year update rather than the bullish forecast for the rest of the year.
Interim profits fell 39% to £15 million after £23 million for impairments, which included a £7 million charge for a commercial finance loan, though on an underlying basis the bad debt rate is stable, said the bank.
The loan book rose by 8.2% over the first half and Secure Trust said it expects a “significant improvement in profitability during the second half of the year through loan book growth and cost leverage”.
Shares dipped 16p or 3% to 562p.